Bangkok’s real estate market shows no signs of slowing down in terms of new condominium construction as projects continue to launch along Sukhumvit Road, a major Skytrain route. The route from the Phloenchit intersection to Sukhumvit Soi 55 or Thonglor is experiencing heavy competition among property developers, as they have launched condominium projects worth more than Bt 100 billion, with more than 10,000 units.
Since last year, nearly 100 projects have been launched in the area by listed and unlisted real estate companies. Construction will be complete between the end of this year and 2013, according to a survey by The Nation newspaper last week. Some examples are The Clover Thonglor, Le Lux & Sky Walk Condo, Ivy Thonglor, The Trendy Condominium, Noble Phloenchit, Ideo Morph 38, and Aequa.
Condominiums along this route are priced between Bt80,000 and Bt200,000 per square meter.
Luxury residences priced over 150,000 baht ($5,000) per square meter are located between the intersection of Phloenchit and the top of Sukhumvit Road between Sois 1 and 10. From Soi 10 to Soi 55, prices range between 80,000 and 150,000 baht per square meter.
One-bedroom units with a total space of 45 to 60 square meters are the most popular in this location.
Noble Development Chairman Thongchai Busrapan said that after bookings for Noble Ploenchit were opened from June 19-22, the company achieved Bt7.2 billion worth of anticipated sales, or half of the project’s total value. of Bt14 billion.
“Although this location has a lot of competition, our project is freehold, which is hard to find in this area, where most projects are for long-term leases,” he said.
The demand in this location is enough to absorb the large number of condo launches, according to a survey by the Real Estate Information Center. Since the Skytrain opened in 1999, the entire Sukhumvit area has grown rapidly in terms of high-end condominiums and also serviced apartments and hotels. In addition to the condominium projects under construction, several five-star hotels are also being built on Sukhumvit Road.
In 2011, the total number of residential units available for sale in Bangkok was 130,282, which included single-family homes, townhouses, semi-detached houses, condominium units, commercial buildings, and residential land. These projects were not sold out and currently have no issues, but at the time of the survey the total units had not been sold and most of the residential projects only launched shortly before the survey.
Growing demand in this area from local and foreign buyers living in Bangkok has pushed condo prices up 10 to 20 percent higher than their pre-sale prices, depending on how close they are to the Skytrain. For example, Ficus Lane at Sukhumvit 44/1, which was priced at 50,000 baht per square meter when it was introduced in 2005, is now selling for 110,000 baht per square meter.
Condominiums on Soi Thonglor that posted presale prices of around 100,000 baht per square meter are now priced at more than 120,000 baht per square meter. Condominiums on Soi Ruamrudee priced at 40,000 baht per square meter five years ago have recently posted sales of Bt120,000 per square meter.